In a nutshell, iGaming as an umbrella term refers to any type of online betting or gaming that wagers on the outcome of a game or sporting event. 

Examples include poker, eSports, online betting, and sports betting. It is estimated that the overall iGaming market is over $66 billion per year and growing, but where is it legal and what else do you need to know?

The legality of iGaming in 2024.

General online sports betting is legal in almost half of all U.S. states. However, there are only seven in which iGaming (a subgenre that usually is used to refer to table games and slots) is allowed. 

These include Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. In 2023, only Rhode Island joined the ranks of the other six. 

Considering that iGaming is generally seen to be bringing in more revenue than sports betting, it is likely that more states will choose to jump on the bandwagon as a way to create additional much-needed revenue.

A vital consideration for iGaming providers.

If you live in one of the states where iGaming is allowed and are thinking of setting up your own operation, it is important to realize that your company will be considered high risk. There are several reasons for this categorization. 

For one thing, gambling is highly regulated, requiring that any payment processing company with which you partner will need to spend additional time and money understanding and complying with the rules. 

Furthermore, gaming has age requirements and carries with it certain stigmas as well as the possibility of consumer addiction. These can taint the reputation of companies involved with it and make merchant account providers squeamish.

That being said, there are numerous opportunities available to owners of iGaming sites. Most notably, they can work with vendors who specialize in payment processing for iGaming industries and companies. 

These entities have forged relationships with banks and other financial institutions and are thoroughly acquainted with the ever-evolving rules and regulations pertaining to this sector.

The outlook for iGaming.

The future of iGaming appears bright but has its complexities. Because it has demonstrated the potential to be quite lucrative, many states may opt to change their legislation and make it legal. However, it also brings with it some legitimate concerns.

For one thing, lawmakers fear that instituting iGaming will lead to the closure of land-based casinos and a subsequent loss of jobs. 

Furthermore, many are concerned about possible addiction-related problems that increased access to gambling could bring to their states. Finally and not surprisingly, many operators of land-based casinos are mounting a strong effort to oppose legalization of iGaming in added locations.

Even though the outlook appears mixed, iGaming represents some golden opportunities for entrepreneurs as well as for the states willing to host them. 

Consumers’ love for wagering and gaming of all types shows no signs of waning, opening the door for high profits for any company with the right financial assets and sanctioned geographic location. 

Only time will tell how long it will take for the entire nation to embrace the subgenre or iGaming.